A Look at Free and Open Source Software Professor Stephen K. Kwan MIS, College of Business San José State University Silicon Valley Open Source Research Project Presented to the MIS Club April 4th, 2006 © Stephen. K. Kwan 2006

What is Free and Open Source Software (FOSS)? HistoryHistory Free …Free … Licensing IssuesLicensing Issues Open SourceOpen Source ExamplesExamples Business ModelBusiness Model Enterprise Adoption of FOSSEnterprise Adoption of FOSS Future TrendsFuture Trends ReferencesReferences

History  In 1984, Richard Stallman of MIT, started the GNU project with the goal that no one would ever have to pay for software  The idea is that the source code is fundamental to the furthering of computer science and freely available source code is truly necessary for innovation to continue  GNU General Public License (GPL) was created to prevent businesses to co-opt the code for their own profitability

Free… Free as in Free Speech (not Free Beer) A controversial idea that was considered anti-business.

Licensing Issues Richard Stallman created the GPL that has certain requirements: Copy and distribute under GPL at willCopy and distribute under GPL at will Cannot inhibit others from doing the same, either by charging or restricting through further licensingCannot inhibit others from doing the same, either by charging or restricting through further licensing Derivative work to be licensed under GPLDerivative work to be licensed under GPL

GPL “Viral Licensing” “Reciprocal Licensing” Risk of Contamination! e.g., Cisco/Linksys Case Led to Open Source Principles, Definitions, Licenses, GPL 2, GPL 3

Open Source Principles Licensees are free to use open source software for any purpose whateverLicensees are free to use open source software for any purpose whatever Licensees are free to make copies of open source software and to distribute them without payment of royalties to a licensorLicensees are free to make copies of open source software and to distribute them without payment of royalties to a licensor Licensees are free to create derivative works of open source software and to distribute them without payment of royalties to a licensorLicensees are free to create derivative works of open source software and to distribute them without payment of royalties to a licensor Licensees are free to access and use the source code of open source softwareLicensees are free to access and use the source code of open source software Licensees are free to combine open source and other softwareLicensees are free to combine open source and other software © Lawrence Rosen 2004

Tension in the Software Market Enterprise IT Buyers Proprietary Software Vendors Open Standards

New Tension in the Software Market Enterprise IT Buyers Proprietary Software Vendors Open Standards Open Source Software Vendors

Three Stages of FOSS threat From: Matt Assay, OSBC 2006 Source: Robin Vasan, OSDL LUAC, 2006 Stage 1: Leverage the commodification of big markets Stage 2: Old Technology, New Markets Stage 3: New Technology, New Markets

Open Source: Crossing the Chasm 1 Market Stage Market Penetration InnovatorsEarly AdoptersEarly MajorityLate MajorityLaggards Chasm JBoss Linux PHP (Zend) Xen Nagios (Groundwork) SugarCRM Eclipse Apache MySQL Snort (SourceFire) Asterisk (Digium) Alfresco SpikeSource From: Matt Assay, OSBC 2006 Source: Robin Vasan, OSDL LUAC, Geoffrey Moore

Example: LAMP Stack P M A L Linux Apache MySQL PhP,Phyton,Perl

Open Source Software Development Initiator – need, curiosity, challengeInitiator – need, curiosity, challenge Community of Collaborators, Contributors, merit-basedCommunity of Collaborators, Contributors, merit-based Bug fixes, feature recommendationsBug fixes, feature recommendations “Under many eyeballs, all bugs are shallow”“Under many eyeballs, all bugs are shallow” “Deep bug detection require deep knowledge”“Deep bug detection require deep knowledge” Who is in charge? – “one neck to wring”Who is in charge? – “one neck to wring” Gated Community, Sheriffs, paid contributorsGated Community, Sheriffs, paid contributors “Oracle makes Linux unbreakable”“Oracle makes Linux unbreakable” Sun – OpenOffice, IBM - EclipseSun – OpenOffice, IBM - Eclipse

Open Source Business Models Enthusiasts for EnthusiastsEnthusiasts for Enthusiasts Installation, Technical Support and ConsultingInstallation, Technical Support and Consulting Add-on ProductsAdd-on Products Commercial License/Open Source License (dual license)Commercial License/Open Source License (dual license) New Competitive AdvantageNew Competitive Advantage From: Bernard Golden Cf. Three Stages of FOSS Threat

Enterprise Adoption of FOSS The model is based on trade-offs among A – Attitude F – Features R – Risk C – Costs Adoption Policy Functional Capability Tolerance Budget It is a technology debate and not a “religious” debate.

A Software System Adoption Model FOSS Attitudes Software Adoption Policy Choice Set Selection Standards Attitudes Selection Metrics Available Products Feedback Firm Context & Attitudes Industry Context D1 Decision Points D2 Risk Evaluation Application Context Architectural & Performance Constraints

A Software System Adoption Model FOSS Attitudes Software Adoption Policy Choice Set Selection Standards Attitudes Selection Metrics Available Products Feedback Firm Context & Attitudes Industry Context D1 Decision Points D2 Risk Evaluation Application Context Architectural & Performance Constraints A F R C

Future Trends Mainstreaming of FOSSMainstreaming of FOSS Growing MaturityGrowing Maturity Proprietary Vendors paying attention – Sun, Microsoft, IBM, Oracle, …Proprietary Vendors paying attention – Sun, Microsoft, IBM, Oracle, … Infusion of Venture CapitalInfusion of Venture Capital New Business ModelsNew Business Models FOSS in Emerging EconomiesFOSS in Emerging Economies

References Chris DiBona, Sam Ockman, Mike Stone ed. Open Sources – Voices from the Open Source Revolution, O’Reilly, 1999.Chris DiBona, Sam Ockman, Mike Stone ed. Open Sources – Voices from the Open Source Revolution, O’Reilly, Chris DiBona, Mark Stone, Danese Cooper Open Sources 2.0: The Continuing Revolution, O’Reilly, 2005.Chris DiBona, Mark Stone, Danese Cooper Open Sources 2.0: The Continuing Revolution, O’Reilly, Martin Fink The Business and Economics of Linux and Open Source, Prentice Hall PTR, 2003.Martin Fink The Business and Economics of Linux and Open Source, Prentice Hall PTR, Bernard Golden Succeeding with Open Source, Addison Wesley, 2005.Bernard Golden Succeeding with Open Source, Addison Wesley, Geoffrey Moore Crossing the Chasm, HarvardBusiness Essentials, 2002.Geoffrey Moore Crossing the Chasm, HarvardBusiness Essentials, Eric Raymond The Cathedral & The Bazaar, O’Reilly, 1999.Eric Raymond The Cathedral & The Bazaar, O’Reilly, Lawrence Rosen Open Source Licensing, Prentice Hall PTR, 2005.Lawrence Rosen Open Source Licensing, Prentice Hall PTR, Steven Weber The Success of Open Source, Harvard University Press, 2004.Steven Weber The Success of Open Source, Harvard University Press, Sam Williams Free as in Freedom: Richard Stallman's Crusade for Free Software, O’Reilly, 2002.Sam Williams Free as in Freedom: Richard Stallman's Crusade for Free Software, O’Reilly, Silicon Valley Open Source Research Project